ISLAMABAD – Pakistan may fail to reach a trade accord with the EurasianEconomic Union (EEU), the Russia dominated alliance after a fall in exportsduring the previous government’s tenure.

The EEU bloc is constituted of Armenia, Kazakhstan, Russia, Kyrgyzstan,Belarus and since Pakistan has no diplomatic relations with Armenia wouldmake it difficult to reach a trade accord, reports *Express Tribune.*

Officials believe the absence of diplomatic ties with Armenia could inhibitthe finalization of the trade deal with EEU.

Pakistan has largely been reliant on the US and EU markets where it tendsto export its textile products.

After the signing of a civilian nuclear deal with India, US ties withPakistan have remained tense and bilateral relations have deteriorated.

Relations with the US worsened after Pakistan and China commenced work onthe $60 billion China-Pakistan Economic Corridor (CPEC).

An official said in the current situation, Pakistan risked the threat of USsanctions and in the previous government’s tenure, overall exports declinedby $4 billion.

As per the official, trade potential with Central Asian states is immense,however, Pakistan’s record of enabling bilateral trade with the regionisn’t that good.

The official added issues of border tax and corruption in Central Asianstates contributed to Pakistan failing to make headway on trade expansion.